Bira’s ₹80 crore name change disaster: A costly misstep?

What’s in a name? For B9 Beverages, the parent company of Bira Beer, apparently ₹80 crore in losses. Bira 91, India’s popular craft beer brand, faced a massive financial setback after a corporate name change led to months of stalled sales and inventory losses, according to reports. B9 Beverages Ltd, formerly known as B9 Beverages Pvt. Ltd, reported a ₹748 crore net loss in FY24, surpassing its total revenue of ₹638 crore for the year.

What went wrong?

The name change, which may have seemed like a routine corporate restructuring, triggered a regulatory hurdle—forcing the company to re-register its product labels across multiple states. This process resulted in:

• A 22% drop in sales as volumes fell from 9 million cases in FY23 to 6-7 million cases in FY24.
• ₹80 crore in unsellable inventory, leading to a write-off.
• 4-6 months of operational delays, particularly in key markets like Delhi NCR and Andhra Pradesh, which contribute over a third of Bira’s sales.

IPO Plans Still in Place for 2026

Despite the financial turmoil, Bira 91 is moving ahead with its initial public offering (IPO) in 2026, contingent on meeting key operational milestones. According to reports, Chief Executive Officer Ankur Jain has confirmed the timeline, with Morgan Stanley advising B9 Beverages on the pre-IPO process.

Key IPO Highlights:

• Target Date: 2026
• Financial Advisor: Morgan Stanley
• Funding Boost: Bira 91 secured $25 million in external commercial borrowing from Kirin Holdings

A Cautionary Tale for Businesses

The setback underscores the hidden risks of corporate rebranding, especially in heavily regulated sectors like alcohol. While other companies have navigated similar challenges, Bira’s case stands out due to the sheer scale of losses and its direct impact on market share.

With an IPO on the horizon, B9 Beverages will need to overcome its operational missteps and regain market confidence to ensure a successful public listing.